RTD Faces Significant Financial Challenges, Memo Warns of 'Difficult Decisions'

The regional transit agency cites an 'unprecedented economic situation' and a nearly $250 million budget deficit.

Feb. 6, 2026 at 8:47pm

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The Regional Transportation District (RTD) in Denver has sent a memo to all employees warning of significant financial challenges that will 'require several difficult decisions and actions in the coming months.' The memo cites an 'unprecedented economic situation' and a nearly $250 million budget deficit in RTD's $1.5 billion budget for 2026.

Why it matters

RTD's financial troubles come at a critical time for the regional transit system, which has struggled with declining ridership and revenue in recent years. The agency's ability to maintain current service levels and staffing is now in jeopardy, raising concerns about the impact on commuters and the broader community.

The details

The memo was sent on February 3, 2026, roughly one month after RTD approved its 2026 budget. Transit advocates like James Flattum, co-founder of Greater Denver Transit, are 'deeply worried' about the budget situation and the potential for service cuts or other actions that could impact frontline staff and riders.

  • RTD approved its $1.5 billion budget for 2026 in January 2026.
  • RTD sent the memo to all employees on February 3, 2026.

The players

James Flattum

Co-founder of Greater Denver Transit, a transit advocacy group.

Matt Larsen

Member of RTD's Board of Directors representing District E.

RTD

The Regional Transportation District, the public transit agency serving the Denver metropolitan area.

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What they’re saying

“We're deeply worried about the budget. We're depleting this reserve that we have, right? It's going to be a couple of years that we're going to be in a really serious financial situation, and that kind of adds complexity right to what was announced back in November.”

— James Flattum, Co-founder, Greater Denver Transit (denver7.com)

“I thought that that was a smart thing to do. I mean, that is the reality.”

— Matt Larsen, RTD Board of Directors member, District E (denver7.com)

What’s next

The next RTD Board meeting is scheduled for February 24, 2026, where more information about the agency's financial situation and potential actions is expected to be discussed.

The takeaway

RTD's financial challenges underscore the broader struggles facing public transit systems across the country, as they grapple with declining ridership, rising costs, and uncertain economic conditions. The agency's ability to maintain current service levels and staffing will be a key focus in the coming months as it works to address its budget deficit.